What is the average energy bill in Australia?

With the cost of energy going up in Australia, everyone wants to know whether they’re paying more than average for their electricity. But the truth is the average energy bill in Australia might look nothing like the amount you actually pay.

• That’s because the cost of electricity in Australia varies widely depending on where you live and your electricity usage patterns.

• The energy plan you’re on also has a big impact on how much your household is paying for the energy you use.

• The best way to ensure you’re paying the lowest possible energy price is to compare energy providers.

Estimated* average energy cost by state

There is no standard energy tariff that applies across the country. Rather, electricity costs vary widely between states. The rate you pay also depends on the distribution network that supplies your electricity, and the energy retailer that sells it to you. That means average energy bills vary widely depending on the fees and tariffs charged by both your distribution network and your energy retailer. However, here are some estimated* energy costs by state:

*Estimates are based on typical cost per kWh and average energy consumption by state.

Estimated average energy cost by household size

The size of your household also tends to affect the size of your energy bills. That’s because more people in a household tend to use more electricity For example, the average energy bill for a 1 bedroom house may be lower than the average energy bill for a 3 bed house. That may be because it could take less energy to heat and cool a smaller home, or more people living in a large house tend to consume more energy. However, that’s not always the case. For example, an average 2 person energy bill could be more than an average family energy bill depending on where they live, the time of day or night they use the most energy, and the rate their energy retailer charges.

Here are some estimated** energy costs by household size:

**Estimates are based on average cost per kWh and typical household electricity usage.

Average energy bill: Why compare?

One of the reasons energy bills vary so widely is because energy retailers offer a range of different rates and deals even to customers who live in the same area. That’s why it’s so important to compare energy providers to find the plan you feel offers the best value for your needs.

Why compare with us?

The experts at Compare Club can do the heavy lifting for you. Our experts compare the big brands and boutique energy providers to find the lowest price that’s available to you. We’re free to use with no hidden fees, and if you decide to switch to a new provider, we’ll take care of all the paperwork for you.

Available rebates for your energy bill

There are a range of rebates available that may help reduce your energy bill. Rebate programs and eligibility requirements differ between states. For example, if you live in Victoria and are an eligible concession card holder, you might qualify for a 17.5% concession on domestic mains electricity usage and service costs. Or if you live in Western Australia and are an eligible concession card holder, you might qualify for a one-off rebate when establishing a new electricity account. There are also energy rebates available for seniors. Use this government tool to find any rebates that might apply to you, or let the experts at Compare Club do it for you.

Key terms

• Daily supply charge: A fixed daily fee for being connected to the energy network, regardless of how much energy is used.

• Tariff: The price per unit of energy consumed (usually measured in cents per kilowatt-hour (c/kWh) for electricity and cents per megajoule (c/MJ) for gas).

• Peak usage: The energy consumed during peak periods when demand is highest, typically charged at a higher rate.

• Off-Peak usage: The energy consumed during times of lower demand, often at a reduced rate.

• Shoulder usage: The energy consumed during transitional periods between peak and off-peak times, with a mid-range rate.

• Controlled load: A separate metering for specific appliances, like hot water systems, charged at a different rate.

Additional resources

• Learn more about understanding your energy bill here. 

• Rate your home's energy efficiency and get recommended improvements here. 

• Cheaper energy, gas, or solar could be just a quick click away.

Frequently asked questions

How much is the average energy bill?

In Australia, the cost of energy varies widely from state to state. That means the energy rate people pay in South Australia is probably different to the energy rate people pay in New South Wales. So the average energy bill in Australia is highly dependent on where you live. For example, the average energy bill in Sydney will likely be different to the average energy bill in Melbourne, and different again to the average energy bill in Brisbane. However, check out the tables above for some estimated average energy costs by state and household size.

How much is the average energy bill per month? The energy rate you’ll pay depends on several things, including where you live, how much energy you use and when, and the energy plan you’re on. However, here are some estimated* monthly energy costs by state:  

*Estimates are based on typical cost per kWh and average energy consumption by state.

Sources

Average Electricity Costs Per Kwh (By State), BlueTTI, https://www.bluettipower.com.au/blogs/home-backup/average-electricity-costs-per-kwh-by-state Energy Data (States and Territories), Department of Climate Change, Energy, the Environment and Water, https://www.energy.gov.au/energy-data/australian-energy-statistics/states-and-territories Australia’s Household Energy Consumption Proportion, Smart Lifestyle Australia, https://smartlifestyleaustralia.com.au/2024/03/05/australias-household-energy-consumption-proportion/#:~:text=According%20to%20data%20from%20the,it's%20about%2025.43%20kWh%2Fday

Paul Coughran is the General Manager of Emerging Verticals at Compare Club. Paul has over 20 years of experience across a wide range of industries including Banking and Finance, Telecommunications and Energy. Paul leads a team of trusted experts dedicated to helping individuals make informed decisions about their insurance and utilities needs.

Meet our energy expert, Paul Coughran

Paul's top energy tips

• 1

  Australia’s top three energy companies still hold 64% of the total Australian market, even though competition was deregulated in 2017.

• 2

  If you don't shop around for energy providers, you’re probably leaving your savings on the table by failing to compare better value options.

• 3

  Most energy providers offer discounted rates for new customers, which is a strong incentive to switch.

• 4

  There should be no interruption when you switch energy providers. You'll need to pay a new company for your energy, but there won't be a disruption to your power supply.